Scott S. Segal, Esq.
Lera K. VanMeter, Esq.
John F. Dascoli, Esq.
Charleston, West Virginia
The Segal Law Firm
David Hart Nelson
Charleston, West Virginia Charlottesville,
Virginia
Attorneys for Appellee
Attorneys for Appellant
The Opinion of the Court was delivered PER CURIAM.
JUSTICE DAVIS, deeming herself disqualified, did not participate in the decision of this case.
JUSTICE MAYNARD, deeming himself disqualified, did not participate in the decision of this case.
2. In divorce actions, an award of attorney's fees rests initially within the
sound discretion of the family law master and should not be disturbed on appeal absent an
abuse of discretion. In determining whether to award attorney's fees, the family law master
should consider a wide array of factors including the party's ability to pay his or her own fee,
the beneficial results obtained by the attorney, the parties' respective financial conditions,
the effect of the attorney's fees on each party's standard of living, the degree of fault of either
party making the divorce action necessary, and the reasonableness of the attorney's fee
request. Syllabus Point 4, Banker v. Banker, 196 W.Va. 535, 474 S.E.2d 465 (1996).
Per Curiam:
In this divorce case, the appellant H. Truman Chafin appeals an order by the
Circuit Court of Mingo County refusing to reconsider a previous award of prejudgment
interest on the equitable distribution award to the appellant's former wife Gretchen O. Lewis,
the appellee. The appellant also appeals the circuit court's award of additional attorney's
fees to the appellee. We conclude that the circuit court erred in awarding the appellee
prejudgment interest and additional attorney's fees. The appellant did not raise the award of
post-judgment interest as an assignment of error in this appeal. We reverse, in part, and
affirm, in part.
Both the appellant and the appellee appealed from the circuit court's December 5, 1996 order. The appellant challenged the equitable distribution of marital property, the award of ten percent pre-judgment interest on the equitable distribution award, the award of attorney's fees and expenses to the appellee, and the award of the couple's Charleston house to the appellee. The appellee contended that the circuit court improperly determined the parties' separation date; this date would significantly affect the size of the marital property for purposes of calculating the equitable distribution award.
In Chafin v. Chafin, 202 W.Va. 616, 505 S.E.2d 679 (1998), this Court
affirmed a portion of the circuit court 's December 5, 1996 order. However, this Court found
that the circuit court had improperly designated the Charleston house as part of the marital
property. Chafin, 202 W.Va. at 633, 505 S.E.2d at 696. We also remanded the case for an
evidentiary hearing regarding the parties' separation date. Chafin, 202 W.Va. at 633, 505
S.E.2d at 696.
(See footnote 3)
On March 2, 1999, the appellee filed a petition in circuit court asking for an
additional $135,195.99 in attorney's fees and costs that accrued after July 31, 1996.
On April 20, 1999, the appellant paid the appellee $286,233.01 to satisfy the
equitable distribution award of the marital property as ordered by the circuit court in its
December 5, 1996 order, as that order was affirmed by this Court in 1998. The payment of
$286,233.01 and the previous payment of $131,461.55 in attorney's fees and litigation
expenses substantively satisfied the undisputed portions of the December 5, 1996 order.
On June 23, 1999, the appellant filed a motion in circuit court seeking to
disallow the pre-judgment interest awarded on the equitable distribution arguing that the law
is now clear that pre-marital [prejudgment] interest is not due and cannot be awarded in
domestic relations cases.
On March 3, 2000, the appellant filed a memorandum arguing that the appellee
was not entitled to prejudgment interest, that the appellee's post judgment should be
limited, and that the appellee is not entitled to additional attorney['s] fees.
On November 17, 2000, the Mingo County Circuit Court awarded the appellee
$61,325.00 in additional attorney's fees, and, in accordance with the circuit court 's
December 5, 1996 order, reaffirmed the appellee's right to post-judgment simple interest on
the equitable distribution award from December 5, 1996 until April 20, 1999 at a rate of ten
percent per annum. In its order, the circuit court also affirmed the prior award of pre-
judgment interest on the equitable distribution.
Following the November 17, 2000 order, on December 20, 2000, the appellee
filed a motion to reconsider arguing that the circuit court had erred in failing to address the
appellee's entitled to post-judgment interest as provided in the December 5, 1996 order and
contested the circuit court 's reduced award of attorney's fees. On December 21, 2000, the
appellant also filed a motion to reconsider challenging the circuit court 's prior rulings on the
appellee's entitlement to pre-judgment interest and the award of additional attorney's fees.
On September 27, 2002, the circuit court denied the appellant's motion for
reconsideration challenging the appellee's entitlement to pre-judgment interest on the
equitable distribution of marital property , and affirmed the granting of $61,325.00 in
additional attorney's fees to the appellee. The circuit court also clarified that the appellee
was clearly entitled to post-judgment interest as held in the December 5, 1996 order and
the November 17, 2000 orders. The appellant appeals from the September 27, 2002 order
assigning two errors: THE CIRCUIT COURT ERRED BY AWARDING THE APPELLEE
PREJUDGMENT INTEREST and THE CIRCUIT COURT ERRED BY AWARDING
THE APPELLEE ADDITIONAL ATTORNEY['S] FEES.
Prejudgment interest is a part of a plaintiff's damages awarded for
ascertainable pecuniary losses, and serves 'to fully compensate the injured party for the loss
of the use of funds[.]' Miller v. Fluharty, 201 W.Va. 685 , 700, 500 S.E.2d 310, 325 (1997)
(internal citations omitted).
Having reviewed our earlier decisions, we conclude that the circuit court erred
in awarding the appellee pre-judgment interest on the equitable distribution of the marital
property. The appellant did not raise post-judgment interest on appeal.
(See footnote 5)
In the fall of 1997, the appellant paid the appellee $131,461.55, in accordance
with the circuit court's December 5, 1996 order as affirmed by this Court. On March 2,
1999, the appellee filed a petition seeking an additional $135,195.99 in attorney's fees and
costs for legal expenses incurred after July 31, 1996. In its November 17, 2000 order, the
circuit court awarded the appellee $61,325.00 in additional attorney's fees; and on September
27, 2002, the circuit court affirmed its order awarding the appellee an additional $61,325.00
in attorney's fees.
Prejudgment interest is awarded, in part, to compensate for the loss of the use
of funds.
(See footnote 4)
When both parties have contributed to a delay, it would be inequitable to allow
one party to profit from that delay. The appellee was awarded and has received almost
$300,000.00 in equitable distribution (and over $131,000.00 in attorney's fees and expenses).
We believe that this award made the appellee whole in respect to the undisputed portion of
the marital property, and that an award of pre-judgment interest is, therefore, inappropriate.
We next review the circuit court 's award of additional attorney's fees as
affirmed in the circuit court 's September 27, 2002 order.
This Court reviews an award of attorney's fees under an abuse of discretion
standard.
In divorce actions, an award of attorney's fees rests initially within the sound
discretion of the family law master and should not be disturbed on appeal absent an abuse
of discretion. In determining whether to award attorney's fees, the family law master should
consider a wide array of factors including the party's ability to pay his or her own fee, the
beneficial results obtained by the attorney, the parties' respective financial conditions, the
effect of the attorney's fees on each party's standard of living, the degree of fault of either
party making the divorce action necessary, and the reasonableness of the attorney's fee
request. Syllabus Point 4, Banker v. Banker, 196 W.Va. 535, 474 S.E.2d 465 (1996).
Having reviewed the record below, we find that both parties have contributed
to the need for the additional proceedings that have resulted in the development of additional
attorney's fees. Given both parties' respective financial conditions, and the ability of each
party to pay his or her own fees, we find that the circuit court erred in awarding the appellee
additional attorney's fees.